China steel, iron ore recover as worries about weak demand ease

Tuesday, Jun 13, 2017

Spot iron ore and steel prices rose on Monday, clawing back some of the ground lost in recent weeks amid renewed hopes about stronger demand for metal even as worries persisted about a growing glut of iron ore in the world's top buyer.

The most-active rebar on the Shanghai Futures Exchange was up 1.4 percent at 3,033 yuan a tonne at 0509 GMT, on track for its best daily performance in three weeks. Prices fell last week for a second straight week.

"While the market remains concerned about the impact of financial deleveraging in China on economic growth, the steel sector appears to be weathering the storm," ANZ analysts said in a note.

Liu Xinwei, steel analyst at consultancy China Sublime Information Group, said demand from the infrastructure and construction sectors continues to prop up the market, even as activity will slow during the hotter summer months.